Tag Archives: economy

Business/Economics, U.S.

Government Incompetence: Hurting for revenue U.S. Postal Service considers giving junk mail companies a cheaper rate? Don’t blame USPS, blame Congress!

8 June 2012, The U.S. Postal Service (USPS) is supposedly in financial trouble, no thanks to the U.S. Congress, but now there are reports that the USPS could give one of the countries largest junk mail distributor a cut rate deal!

Valassis Direct Mail has been negotiating with the USPS for a lower rate.  But wait, don’t blame the USPS!  The USPS can not set postal rates!  It is the U.S. Congress that makes those deals! It’s actually the Postal Regulatory Commission that Valassis Direct Mail has been negotiating with.

For some reason the mainstream newspaper media is bashing the USPS directly.  The Newspaper Association of America (NAA) says it’s not fair to give junk mail distributors a cut rate on postage, especially when the USPS is in need of cash.

It is the Postal Regulatory Commission (PRC) that will make the decision on the deal. The PRC is a Congressional commission!!!

In September 2011, the USPS Postmaster General, and the president of the National Association of Letter Carriers, explained in a heated PBS interview that it was the rules imposed by the U.S. Congress (like over paying into federal funds) that is destroying the USPS.

One of those rules is that it is Congress that makes the postage rate deals!

At the end of May 2012, the USPS announced they will layoff 45,000 employees.  It’s part of the plans to layoff 150,000 employees by 2015.  Also in May, USPS announced they would try and cut back on working hours, hoping to prevent closing down anymore post offices and distribution centers.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government (taxpayer) debt.

 

Business/Economics, International, U.S.

What Economic Recovery? President of Argentina dumps U.S. dollars. Pesos more profitable, or just another sign of Hyper Inflation?

“I’ve just had one fixed term account in dollars for some time, and I’ve decided to put it in pesos, it’s more profitable to have it in [Argentine] pesos.”-Cristina Fernandez, President of Argentina

7 June 2012, la Presidenta also urged “…any officials who’ve got a few little dollars to do the same thing.”

Argentina is the number three economy in South America.  However, having a booming economy has resulted in an inflation rate around 9 to 10%!  The result is that many people, and banks, in Argentina are buying up U.S. dollars to try and hedge against hyperinflation.

Argentines have been there done that many times before.  Many people bought U.S. dollars to survive Argentina’s notorious hyperinflation in the past, but this time the U.S. economy is in the toilet, so buying up those gringo dollars might be a bad move.

 

 

Business/Economics, U.S.

Government Incompetence: Vacuum cleaner causes fire that results in $400 million repair bill for U.S. taxpayers!

It turns out that a “massive” fire on a U.S. Navy nuclear submarine, on May 24,  was caused by a vacuum cleaner!  It burned for several hours and sent several personnel to the hospital. The sub was docked at the Portsmouth Naval Shipyard, in the U.S. state of Maine.

Now comes the news that the fire was caused by a vacuum cleaner “…stored in an unoccupied space…”, and that the “…initial rough repair cost…” will be $400 million plus 10%!!!

And guess who pays for the U.S. Navy’s mistakes?  The U.S. taxpayer!

At least the Russian’s claimed their recent submarine fire was an act of sabotage by U.S. agents.

Business/Economics, U.S.

What Economic Recovery? Best Buy founder jumps ship, hopes his leaving will help company recover!

“There is an urgent need for Best Buy to reinvigorate growth by reconnecting with today’s customers and building pathways to the next generation of consumers.”-Richard Schulze, founder of Best Buy

7 June 2012, founder and boss of Best Buy for 36 years, Richard Schulze, has resigned.

Best Buy has been struggling with falling sales, and accusations of inappropriate behavior by members of the board.

A former CEO of Best Buy is accused of “…violated company policy by engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment…”-Best Buy statement

Best Buy suffered a 26% drop in net income for the 1st quarter of 2012!

Business/Economics, International, U.S.

World War 3: U.S. ally, United Kingdom, slams U.S. focus on Asia Pacific as new area of global conflict. Bad economy to blame!

On 4 June 2012, an official representative of the Queen Elizabeth II’s Royal Military, criticized the plans of the United States, to send 60% of U.S. naval forces to the Asia Pacific region by 2020.

Armed Forces Minister, Nick Harvey, stated that the Royal Navy, let alone other European navies, will not be ready to pick up the slack in the Atlantic, by 2020.

The United Kingdom has been slashing and burning its military budget.  The Ministry of Defence revealed that in the past three years $26.2 billion USD of military equipment has been scrapped!

Harvey said it will take time to rebuild their navy in order to fill the void when the U.S. sails most of its fleet to Asia:  “When we’re back in the carrier strike game we could pull more weight, [but] if Europe is to take more responsibility, we’ve got some way to go.”

Business/Economics, U.S.

What Economic Recovery? British government cuts services, then charges British taxpayers for Queens Jubilee! Royal parasite family just lost the British economy $1.8 billion+!

5 June 2012, the government of United Kingdom has been slashing and burning social programs, yet charges the taxpayers for the Queen’s Jubilee!

While the people of Britain have been told that austerity measures are necessary, they were forced to pay at least $1.5 million USD so that the Queen could celebrate 60 years of rule!  The $1.5 million is the estimated amount coming from the Sovereign Grant Fund, as reported by The Guardian.

The Sovereign Grant Fund is what the British subjects (taxpayers) pay to the Royal parasite family. You could call the Royal parasite family the wealthiest welfare recipients in the world!

Queen Elizabeth II is not a figure head, and any public ceremony held for the Royal parasite family is paid for by taxpayers!

Private donations also pay for the Royal parasite family’s public parties.  According to estimates reported in The Guardian, donations paid for $16.2 million USD of the jubilee expenses.

Local governments forked over an average of  $700,000 USD to support the jubilee.

Then there’s the “extra costs” caused by the fact that most businesses were closed for the jubilee.  One estimation says the extra “bank holiday” could end up costing the British economy $1.8 billion USD!

Back in March, the Bank of England warned of economic doom because of continued support for the Royal elites.  So much for the Royal parasite family being of any benefit to the people of Britain!

 

Business/Economics, International, U.S.

What Economic Recovery? Emergency meeting Group of 7! “Impossible” to save Spain! Major credit freeze coming, just as Toyota warned!

“It is really hard in Spain to get a job right now because there are no jobs, and if somewhere you might have a chance, they do not want to pay what is more or less normal. Plus, everything is so expensive: supermarkets, food… Everything is really difficult now.”-Ada Adon, unemployed in Madrid, Spain

 

It has been revealed that the seven top industrialized countries (Group of 7, aka G7) had been in an emergency phone conference since late last night Japan time, early morning U.S. time!

Finance and banking officials from Japan, United States, Canada, Britain, France, Germany and Italy were discussing the global economic situation, a sign that things are getting worse!  The focus is on the European Union (EU).

No joint statement was issued, but Japan’s Finance Minister, Jun Azumi, said all efforts at the moment will focus on preventing a total collapse of the EU.

A German analysts said many investors are on the verge of giving up: “History is repeating itself, we are again in full crisis mode. Last year: crisis; this year: crisis.  The politicians have learned nothing. It would be so easy though. The ECB [European Central Bank] should massively intervene and buy time for countries like Italy and Spain so that they can pursue reforms. Nobody can bear this cacophony, this waiting, this riding out any more.”-Robert Halver, Baader Bank

This comes before the G20 meeting, and it comes on the same day Spanish officials announced a possible second credit crisis.

Spanish Treasury Minister, Cristobal Montoro, admitted on Spanish radio that it was “technically impossible” to save Spain’s economy!

It turn’s out that the recently created EU European Stability Mechanism (a bailout fund) doesn’t have enough money to bailout Spain, let alone other EU members!

Montoro blames high interests rates for crashing the Spanish economy, as well as other EU economies. He says the result will be another huge credit crunch.  On 31 May 2012, Toyota of Japan signaled such an international credit crisis by announcing it was selling $2.5 billion USD in bonds, to raise cash in order to ride out a second coming credit crisis (of course the U.S./British media misreported it).

 

 

 

 

Business/Economics, Idaho, International, Technology, U.S.

What Economic Recovery? Idaho’s Hoku Materials about to be finished off by lawsuits from unpaid contractors! Lays off 100 more employees in Bannock County!

“The proceeds of the loan are insufficient to pay down current liabilities, resume construction or start commercial operations. The loan proceeds will be used to fund working capital requirements while we plan for a restructuring of our liabilities, and the liabilities of our subsidiary Hoku Materials Inc.”– Scott Paul, CEO of Hoku Corporation

At the end of May, 2012, the CEO of Hoku Corporation basically said that Hoku Materials, in Pocatello, Idaho, has ceased operations, even before it began operations!

I speculated that the 17 May decision to jack up U.S. tariffs on Chinese made solar products would be the final nail in the coffin for Hoku Materials, and it looks like I was right.

This is because Hoku turned to Chinese companies to bail them out of their financial woes.  They became a subsidiary of Tianwei New Energy Holdings, which is an affiliate of China South Industries Group Corporation (CSGC).  All their contracts are with Chinese solar product companies hoping to increase their business in the United States.

On top of that, JH Kelly, primary contractor working on the Hoku Materials project, is finally fed up with not being paid and has sued Hoku.

At the beginning of 2012 Hoku Materials laid off 20 employees (according to an Idaho State Journal report, that left around 150 employees).

In April, remaining construction work was stopped all together (due to the lawsuits).

At the end of May 2012, a local Pocatello TV station started getting phone calls from unnamed sources within the Hoku Materials factory.  The callers were reporting massive layoffs.

Hoku Materials admitted to the local TV station that they laid off another 100 employees, because of massive debts, the increased U.S. tariffs on Chinese solar products, and civil suits by JH Kelly and other contractors!  Hoku is now going through “restructuring”, which usually includes selling off assets to pay debts.

I’ve been warning since 2010 of the impending doom of Hoku Materials.  The sad thing is that officials with the city of Pocatello, as well as Bannock County officials, bent over backwards to get Hoku to build their polysilicon plant in Pocatello (that included essentially giving the land to Hoku, by allowing a tax credit equal to the value of the land). This is because truly good paying jobs have become hard to find locally (no thanks to previous city and county leaders chasing off major employers for personal/religious reasons, such as refusing to allow Union Pacific to make Pocatello their Pacific Northwest Depot!).

Now there’s an unfinished polysilicon factory, taking up space equal to 50 football fields!  To top that, the factory butts up to a residential area, a once dead end residential street is now the entry road to the defunct factory!

NEW Obama imposed U.S. TARIFFS ON CHINESE SOLAR PANELS COULD BE THE FINAL NAIL IN THE COFFIN FOR IDAHO’S HOKU MATERIALS

Business/Economics, International, U.S.

What Economic Recovery? Sears to sell off Canadian operations!

31 May 2012, Sears Holdings announced that it will sell off a portion of its Sears Canada operations.  Currently Sears Holdings controls 95% of Sears Canada.

Sears Holdings said it “…will retain approximately 51% of the issued and outstanding common shares of Sears Canada.”  So they are willing to let go of 49% control of Sears Canada in order to raise cash, however, Sears Holdings states they reserve “…the right not to complete the spin-off …”.